Friday, May 04, 2012

The list of former housing bears arguing that house prices are now at or near the bottom is growing. Even Professor Robert Shiller - without making a prediction and suggesting prices could "overshoot" - said this week on CNBC that "[house prices] are back to normal levels".

I’m back in. Yes, I’ve finally purchased a house after renting for the past six years. I sold my previous house in May 2006 after nearly a decade of being a homeowner because I was convinced U.S. housing prices were set to fall, and I wrote about it in prior Credit Perspectives pieces, “For Sale” (June 2006) and “Still Renting” (May 2007). Many of my friends, family and colleagues have asked me over the past several years, “Are you still renting?” In fact, that is probably the question I’ve heard most often from clients, consultants and the media over the years.

So, next weekend I’ll be moving into a house. My decision to buy was mainly driven by the improved relative value of U.S. housing. ...

Today, however, U.S. housing looks like a decent place to put money over the next several years. I’m not sure if U.S. housing prices have bottomed – only time will tell – but there are many more positives today than there were six years ago when I sold my house
...
For those of you renting or on the sidelines, I recommend you at least consider getting “back in” and buying a house in the U.S., particularly in an area of the country where supportive fundamentals and policies could cause inventories to fall and job growth to improve.